Oil resumes soft decline as WTI loses $68 again
- US oversupply, Iran deal tensions are combining to keep oil prices constrained in the middle.
- Weekly crude stocks this week could send oil price for a bigger ride than usual as lines remain taut.
Crude oil has hit the new week stumbling, with WTI spiking briefly to 68.25/barrel before resuming the slow slide lower, trading into 67.80 ahead of the European markets.
Issues from the US continue to play tug of war with oil prices, with US oversupply continuing to pressure oil prices lower, exacerbated recently by an uptick in the US oil rig counts. While US President Trump's ongoing threats to pull out of the 'Iran deal' are bolstering oil prices across the board as the US' involvement continues to threaten oil instability in the Middle East, oil prices are struggling to make much headway in either direction.
A further buildup in US oil producer inventories could knock crude back down and challenge the overall bull trend, while a surprise drawdown in temporary supply buildup could boost oil prices enough to claim the next major handle and resume lifting.
Oil levels to watch
Crude is still holding onto an overall bull trend, and bears will be looking to knock prices below the 50.0 Fibo level at 65.40 in order to challenge April's low at 61.80, while bulls will want to drive prices beyond the current ceiling at April's high of 69.50.